Evaluating the Effects of Corporate Governance on Firm Financial Performance: A Comparative Study Across Industries

Abstract

Corporate governance plays a critical role in shaping the financial performance of firms by establishing the framework within which corporate objectives are set, attained, and monitored. the effects of corporate governance on firm financial performance, with a comparative analysis across different industries. governance factors such as board structure, ownership concentration, executive compensation, and transparency, and their influence on financial metrics including return on assets (ROA), return on equity (ROE), and market value. Using a sample of firms from various industries, the study employs a combination of quantitative analysis and industry-specific case studies to assess the relationship between corporate governance practices and financial performance. The findings reveal that while strong corporate governance is generally associated with improved financial outcomes, the impact varies significantly across industries. Sectors with high regulatory oversight and complex operational environments tend to exhibit a stronger correlation between governance quality and financial performance.